PS5 Shipped 41.7 Million Units as Sales Grow Significantly & Profits Drop Due to Acquisition Costs

Sony just released its financial results for the first quarter of the fiscal year, including an update on PS5 shipments and more.

[sparky77]

Wow despite decent hardware sales Sony still isn't making much money, it's no wonder they are cutting consoles prices everywhere and going 95% GaaS.

What's interesting is that PS as a whole made $0.652bn profit this quarter while ABK made $1.38bn. If MS owned ABK, Xbox would comfortably be making more profit than Playstation.

[shadowT]

since the Activision transaction was valued $68.7 billion, it will take some decades to get this investment profitable.

[sparky77]

MS brought ABK not Xbox. And MS make around $20bl profit every quarter, they will make the money back by the end of the year :)

[sparky77]

Also to add to my above to point because it seems this narrative that MS needs to make this "investment profitable" keeps coming up. Phil actually responded to this exact point during the FTC trial and gave a good example. If you buy a $1ml house and buy it with cash, once you own it do you think to yourself "I need to make that $1ml back now that I brought this"? No you don't because you brought and now own that asset, that asset is now part of your net worth/value so everyday you live in that house you are getting your money worth. It's the same with ABK, they will make their money back by the end of the year but that doesn't even matter since the $70bl value is now part of MS's value.

[Christopher]

@sparky77: So it's good that MS has to prop up Xbox and bad that PS has to prop up Sony? Weird logic.

[sparky77]

@Christopher
If the way MS props up Xbox is by acquiring companies to make more games on Game Pass yeah that is good.

If the way Sony props up PS is by making more GaaS games instead of single-player yeah that's bad unless you like GaaS of course.

[Christopher]

*** If the way MS props up Xbox is by acquiring companies to make more games on Game Pass yeah that is good. ***

The amount of risk involved in this purchase and reliance on Game Pass taking off as well as getting off hardware consoles and into subscription service completely ignored.

You go from an argument about profits to an argument that ignores all of that because you get more games on your subscription service. This isn't an argument, this is a deflection.

*** So, tell me again who is the one doing GAAS, and we all know Starfield is going to be GAAS'd up with MTX DLC and PAID MODS. ***

They've said otherwise, actually.

*** EDIT: And it's funny you call out ABK profits as a positive when all that money is made from GAAS selling MTX in COD. ***

This is pretty accurate, let alone the most profitable and performing games out of Xbox are also GaaS games. But, bad when Sony do it.

[__SteakDeck__]

@FoxQ It’s sparky, he’s a weirdo. He always comments negatively on PS. Lol

[itsmebryan]

@shadowT
That is not how investments work. I buy real estate. Say I buy a house for $50,000 and rent it for $1000 a month by your logic it takes me 50 months to recoup my money. That's the wrong way to think about it. Because if the value goes up or stays the same I can sell the property for what I paid for it or more in the future plus, I keep all the money I got paid for rent.
This is a long term investment . They bought this for cash. This investments will make them more yearly then the would make just sitting in the bank.

[sparky77]

@itsmebryan
I wouldn't bother trying to explain, it's quite clear from all the comments that next to no one on this site has much business knowledge lol

[Christopher]

***Because if the value goes up or stays the same I can sell the property for what I paid for it or more in the future plus, I keep all the money I got paid for rent. ***

Sure, kind of like what Elon can do with X.

And you don't keep all that rent money. You have to fix any issues in the house, you have to pay any property fees, you have to pay taxes, etc. Let alone you also have to find and get tenants or pay a company to do that for you. Heck, didn't even go into insurance for the house and as a rentee.

There's a lot involved in renting, even more in what Microsoft is doing that looking at just the cost to buy the company isn't even the cost at all and how much you'll have to continue to pay to keep it at that value let alone try to increase the value.

[Mr_cheese]

Bright sparks at it again.

Always ready to offer his enlightening take...

[fr0sty]

So, let's get this convoluted logic straight...

"PS as a whole made .62B, ABK made 1.38B"

OK, so the goal posts are PS' profits, but not Sony's, and ABK's Profits, but not MS...

"If MS owned ABK, Xbox (not MS) would be making more than PlayStation (Not Sony)"

And we're completely ignoring the 68 billion MS is on the hole for the purchase of ABK...

"MS bought ABK, not Xbox (which admits that it has, in their own words, lost the console wars). MS Makes 20b every quarter (and buying ABK erases almost a full year of the entire company's profits.)"

So now we're no longer just talking about Xbox and PlayStation, the goal posts have moved to MS as a whole, because ol' sparky knows he can't keep the argument in the realm of Xbox anymore and is now grasping at straws in order to try to prove his weak point.

You're twisting yourself into a pretzel trying to justify a losing position.

[glennhkboy]

Not decades, maybe a couple of years. Theoretically MS can pay for the 68.7 billion cost with cash from a couple months of GamePass subscription fee.

[Redemption-64]

@glennhkboy

Not decades, maybe a couple of years. Theoretically MS can pay for the 68.7 billion cost with cash from a couple months of GamePass subscription fee

Where are you getting this made up logic from? Did you fail 1st grade math? Theoretically MS cannot pay for the 68.7 billion cost with cash from a couple months of GamePass subscription fee

[S2Killinit]

It took Sparky ten comments to say “Im not very logical and I love MS”

[Charlieboy333]

@ Sparky ABK made $1.38bn as they are NOW. How sure are you that this trend will continue once Microsoft infects them and drags the quality and budgets down to their usual standard....everything to be viable as gamepass 'value' content with MT's out the ass.

[Crows90]

Not to mention they make that money based on being multiplatform games. Once they become exclusive and remove platforms then the money goes down even more

[DOMination-]

As they are NOW... ABK are hardly the shining light of the games industry.

Most of their games already have MTs and as for MS "usual standard" when it comes to budgets.. weren't you guys saying Halo Infinite cost $500m..? :D

As for losing revenue by making games exclusive.. well yes but what's your point? If Sony made their games for Xbox they'd make more money too. The whole point of exclusives is to create a USP for your platform and if they are good, it means more hardware sales, more software sales, more accessory sales and more subscription sales. In addition to this, they make ALL the money when selling a first party game on their own platform whereas they have to pay licensing to release on other consoles and Sony take a 30% cut.

Basically - The Exclusives vs. Multiplat debate is nowhere near as simple as you think it is. Nobody would ever suggest MS will recoup that overnight, but if they can start delivering on their promises of regular quality games (and yes, that's a very big if right now), then these purchases will start to pay off for their ecosystem.

[Charlieboy333]

@DOM I didn't just mention budget. I mentioned quality as well. Is Halo Infinite 'quality' to you? No, it is pathetic from Microsoft first party after 6+ years. The fact that they spent 500 mil on that fuck up makes it more pathetic.....not something to brag about

[Eonjay]

Please stop the spam.

[P_Bomb]

Tis a lotta doom before breakfast, heh! Article is more positive than the comments would suggest tho.

[IRetrouk]

What's xbox profits at?

[IRetrouk]

Xbox don't post their profits, only revenue lol
They had their quarter results last month...
Playstation has been beating them constantly, on console sales, game sales, network and services.... yet you think they will profit more than playstation, interesting take I suppose🤷🏻‍♂️ 🤣

[Vengeance1138]

You realize that Xbox would be making even less money right with much fewer game sales and next to zero hardware sales lol and a massive cost in acquisitions that will take them an eternity to get back.
Call of Duty should be quite the dead series shortly after MS gets its hands on it.

MS puts all their low budget slop on a lazy sub service hoping for people to forget to cancel... That's bad
Sony funds top tier engaging Gaas to be enjoyed and played for years... That's good!

[Aloymetal]

"If MS owned ABK, Xbox would comfortably be making more profit than Playstation."
All of you are so predictable with your posts and opinions, it's always who's making more money and who has more in the bank but never about who's making great games all the time. Keep counting how much $ MS will make and we on the blue side will be counting how many goty contender games we as GAMERS (and not STOCK holders) get to play.

[Eonjay]

He knows all this. He is being toxic. It's part of the brand.

[ChasterMies]

“If MS owned ABK, Xbox would comfortably be making more profit than Playstation.”

A $70B acquisition is a profit killer. Regardless, Xbox is but a mere business unit of Microsoft. Microsoft as a whole is profit monster, and it’s the profits from OS, Office, and cloud storage that lets Microsoft throw money at Xbox.

[TheCaptainKuchiki]

The worst take I've read today.
Do yourself a favor and stop thinking about things that are clearly beyond your understanding.

[Redemption-64]

That is a lot of salt and copium

[crazyCoconuts]

You're missing the bigger picture. Sony's profits dropped due to acquisition costs. Not because Bungie wasn't profitable. But because of the purchase price of the acquisition and the associated costs with bringing them into the fold.
What you should be realizing is that MS will have much bigger costs with ABK because it's a MUCH bigger purchase and a bigger entity.

[anast]

This is in the running for the dumbest take of the month.

[S2Killinit]

@sparky
What a weird comment. At least get your math right.
Sony already made a profit AFTER cost of acquisitions. MS has to pay of 68 BILLION to be where Sony is at right now.

[DarXyde]

I can hear your pants shrinking through the internet 🙄

1. I'm not too thrilled with Sony at the moment, but don't you think it's really premature to say they're going "95% GaaS"? I see that much of their new studios are like Haven and Bungie. Convenient, as you ignore Guerilla, Insomniac, Naughty Dog (who is making one such game but also one that is not), Sucker Punch, and others.

2. As you said, MS *bought ABK, not Xbox. So with ABK, Microsoft would "comfortably be making more money than PlayStation", not Xbox.

3. Don't be too quick to be proud of a corporation's profits. You probably don't care, but the vultures at Microsoft literally laid off more people after the FTC hearing. Gross, but at least you get Call of Duty on Game Pass.

[shinoff2183]

I've slammed Sony for the gaas shit but sparky 95 percent. Lol your reaching so damn hard

[Sonic1881]

Another negative troll comment from Sparky77. I'm not surprised

[Chevalier]

Sparky only shows a spark in the darkness, definitely not bright though. Literally the dumbest take possible. Bright as a dead light bulb

[BehindTheRows]

Folks, this is sparky…. Why is anyone even engaging him? Sony is killing it right now and this is the nonsense he comes up with. Don’t waste the energy!

OT: Of course, they continue to kill it!

[WelkinCole]

Seriously man. Dont go into business

[ziggyzinfirion]

@sparky77 That is probably the most dumbest take, seriously.

[Aloymetal]

VGchartz should update their "estimated" numbers for PS5, they're about 2 millions behind.

[ChasterMies]

There is a gap between shipped an sold. But then we all know that every PS5 shipped will sell.

[DashMad]

No need PS5 is 40 million sold through and 41,7 million shipped and Vgchartz number was July 1 number they're pretty accurate .

[Hereandthere]

There's no competition really, Xbox is awful, the controller is 3 gens old tech, series x is held back by series s, low budget 1st party games. So ps5 really is the ONLY next gen console and controller on the market. Sad to see how far xbox has fallen due to gamepass and teaching their players that its ok not to buy games.

[ApocalypseShadow]

And no VR.

[ApocalypseShadow]

And no VR as well

[DefenderOfDoom2]

"PlayStation Network has 108 million active users" That seems pretty good .

[PaleMoonDeath]

Bought my PS5 today, from £480 to £400? you're damn right I am snatching it up! feels so slick, downloading games all day today also, that £400 mark is a sweeeet point, all my friends are latching on and their PC folks, gotta take advantage!

[Father__Merrin]

Took advantage of the £399 offer finally got one. Horizons zero dawn with ps5 patch is simply breathtaking tbh

[MrNinosan]

If you think HZD is breathtaking, just wait til you near the end of Horizon Forbidden West <3

[Father__Merrin]

Im only at the start with young aloy, the HDR is out of this world think il catch up on some missed titles first

[Aloymetal]

Congrats! I know you've been trying to get one for the longest.
Like @MrNinosan said, HZD is nothing compared to Forbidden West, wait til you see that beauty!
No spoilers so check this out (4k/60 HDR) https://www.youtube.com/wat...